Restructuring

In April 2017, the Company commenced a restructuring plan in the Technical Nonwovens segment which includes plant consolidations and transfer of equipment to other facilities within the segment's Europe and China operations. The consolidation of certain plants, which is expected to conclude in 2019, is expected to reduce operating costs, increase efficiency and enhance the Company’s flexibility by better aligning its manufacturing footprint with the segment's customer base. Accordingly, the Company expects to record pre-tax expenses of approximately $4.2 million, in connection with this restructuring plan, of which approximately $3.7 million is expected to result in cash expenditures over the period of consolidation. The Company also expects to incur cash expenditures of approximately $3.8 million for capital expenditures associated with this plan.

During the year ended December 31, 2018, the Company recorded pre-tax restructuring expenses of $2.3 million as part of this restructuring plan. Restructuring expenses of $1.9 million were recorded in cost of sales and $0.4 million were recorded in selling, product development and administrative expenses. During the year ended December 31, 2017, the Company recorded pre-tax restructuring expenses of $0.7 million as part of this restructuring plan. Restructuring expenses of $0.4 million were recorded in cost of sales and $0.3 million were recorded in selling, product development and administrative expenses. The Company expects to record approximately $1.2 million of restructuring expenses as part of the restructuring plan in 2019.

Actual pre-tax expenses incurred and total estimated pre-tax expenses for the restructuring program by type are as follows:



In thousands	Severance and Related Expenses		Contract Termination Expenses		Facility Exit, Move and Set-up Expenses		Total
Total estimated expenses	$	1,250	$	450	$	2,500	$	4,200
Expenses incurred during year ended:
December 31, 2017	181		154		327		662
December 31, 2018	606		136		1,555		2,297
Estimated remaining expense at December 31, 2018	$	463	$	160	$	618	$	1,241

There were cash outflows of $2.2 million and $0.2 million for the restructuring program for the years ended December 31, 2018 and 2017, respectively.

Accrued restructuring costs were as follows at December 31, 2018:



In thousands	Total
Pre-tax restructuring expenses, excluding depreciation	$	510
Cash paid	(177		)
Balance as of December 31, 2017	$	333
Pre-tax restructuring expenses, excluding depreciation	$	2,012
Cash paid	(2,198		)
Balance as of December 31, 2018	$	147